QUESTION 1 Chapter 4 Question #2 The agency problem arises when managers have control rights but insignificant cash flow rights. The agency problem arises when managers have significant cash flow rights and no control rights. The agency problem arises when stakeholders have significant cash flow rights and no control rights. The agency problem arises when shareholders have control rights but insignificant cash flow rights. QUESTION 2 Chapter 4 Question #4 Select reason(s) why the English common law tradition provides the strongest protection of investors: English common law is based on Roman law tradition. Therefore it provides more protection to investors. Strong investor protection leads to small capital markets. Company ownership is highly concentrated in the UK. Historically, English common law is more protective of property owners and the protection extended to investors over time. QUESTION 3 Chapter 4 Question 7 Select the statement(s) required by the Cadbury Code of best Practice The board is required to meet only once a year. The Chairmen of the board and the CEO must be the same person. There should be at least 3 oustide board memebers. The Chairmen of the board and the CEO must be the different people. O Click Save and Submit to save and submit. Click Save All Answers to save all answers